A two-phase stochastic programming approach to biomass supply planning for combined heat and power plants

Daniela Guericke (), Ignacio Blanco, Juan M. Morales and Henrik Madsen
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Daniela Guericke: Technical University of Denmark
Ignacio Blanco: Technical University of Denmark
Juan M. Morales: Málaga University
Henrik Madsen: Technical University of Denmark

OR Spectrum: Quantitative Approaches in Management, 2020, vol. 42, issue 4, No 2, 863-900

Abstract: Abstract Due to the new carbon neutral policies, many district heating operators start operating their combined heat and power plants using different types of biomass instead of fossil fuel. The contracts with the biomass suppliers are negotiated months in advance and involve many uncertainties from the energy producer’s side. The demand for biomass is uncertain at that time, and heat demand and electricity prices vary drastically during the planning period. Furthermore, the optimal operation of combined heat and power plants has to consider the existing synergies between the power and heating systems. We propose a solution method using stochastic optimization to support the biomass supply planning for combined heat and power plants. Our two-phase approach determines mid-term decisions about biomass supply contracts as well as short-term decisions regarding the optimal production of the producer to ensure profitability and feasibility. We present results based on ten realistic test cases placed in two municipalities.

Keywords: Mixed-integer programming; Stochastic programming; Combined heat and power plants; Biomass supply planning; Operational planning (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s00291-020-00593-x

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